Why Playa Vista Office Rents Are Falling

Michael Arnold

Play Vista office rents are dropping. Rents in the premier Westside market—which has seen phenomenal activity in the last three years—fell nearly 5% this in the first quarter over last year, according to research from NAI Capital. Despite the drop, lease rates in Playa Vista remained at nearly $5.50 a foot, the highest average rate in the Silicon Beach market.

“There aren’t any real large transactions that have transpired in the last six months in Playa Vista,” Michael Arnold​, EVP at NAI Capital, tells GlobeSt.com. “People are taking small pieces, but there aren’t any large deals. As a result, some landlords are being competitive and driving rates down to compete with Santa Monica. If the rates are the same as Santa Monica, most people won’t drive an extra 20 minutes to Playa Vista.”